My last post discussed construction equipment and how it’s not only revenue-generating but also holds its value relatively well. So a natural segue would be to discuss used heavy equipment financing, which I’m going to do here.
Used heavy equipment financing is something Crest Capital has done for more than 30 years and remains one of our core offerings. We finance heavy equipment for both equipment purchased from a dealer, and we also finance private party used heavy equipment sales. In some cases, we even financed a piece of equipment when a company bought it new, then six years later financed the used sale for the new owner.
One big reason used heavy equipment is a robust industry is that most pieces of heavy equipment are not as impacted by technology as much as other types of equipment. Of course I’m not saying advances have not been made – today’s heavy equipment offerings are definitely better than yesterday’s – but the advantages may not be immediately noticeable, especially when it comes to the core work. An older backhoe can generally hold its own against a newer model for most backhoe-related functions. An older dump truck can still do what a dump truck is supposed to do – hold and dump its cargo. The interior, engine, and creature comforts may differ radically, but the “hold and dump” parts will be similar. A profitable, growing construction company can certainly find use for a used dump truck.
There’s almost nothing I like better than talking to someone about financing used heavy equipment. I like construction people in general, and there’s always some excitement in the air when a used backhoe, dump truck, skid steer, or similar is changing hands. And I enjoy it when businesses are happy about getting new-to-them equipment and seeing a profitable future.
If you’re in the construction industry, you can probably look back and feel an affinity for a certain piece of heavy equipment you no longer have. It may not be today’s shiny new model, but I’ll bet you’d like to operate it one more time!